TIOL-DDT 1866 · Monday, 28 May 2012 · story 5 of 5

Petro Hike - Who Benefits?

THERE has been an unprecedented hike in petrol price speeding it to Rs. 80 per litre. But out of this Rs. 80/- about 43 percent that is about Rs. 35/- goes for taxes – excise duty and VAT. Every time the Central Government hikes the petrol price, the States get a bonus in higher VAT. Should you blame falling rupee and import bill for hike in the fuel price?